Do I need an MBA to stay in Big 4 / move up, how beneficial?

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A certification like a CPA is better

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It depends on your line of work and what you want to do. For example, if accounting and finance a CPA will cover just about any role. If in systems, get a systems cert such as the CISA. Personally, I found the MBA not worth it given the cost of the MBA and forfeiting 2 years salary to study full time. Payback for me was going to be like 15 years

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You don't need an MBA to stay in or advance in KPMG, regardless of service line. However, an MBA would likely increase your pay significantly compared to having the same level without an MBA.

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This is only true if he comes back as an MBA hire, right? Does it apply to PT MBAs?

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